Bank of Israel Rejects Netanyahu Cryptocurrency Plan To Bypass Sanctions
By The Media Line Staff
The Bank of Israel criticized Prime Minister Benjamin Netanyahu’s proposal to develop a cryptocurrency-based plan to bypass possible future banking sanctions against Israel, calling the approach impractical and arguing that preventing sanctions should be the priority.
“Cryptocurrencies cannot serve as a route to bypass sanctions,” the bank said. “The right thing for Israel’s economy is to preserve economic relations with our main trading partners and to focus on preventing sanctions and their negative impact on the economy. This issue falls within the purview of the political echelon, and it is appropriate to take action to advance it.”
The bank said it is “better to focus on preventing sanctions,” noting that operating in the global economy solely through cryptocurrencies is not possible.
Netanyahu, speaking to Israel’s Channel 10 on Friday, days before the election, acknowledged the possibility of banking sanctions and said he had requested a plan based on blockchain technology that could help circumvent them.
During the interview, Netanyahu also warned that American military assistance would eventually end.
His comments drew sharp criticism from political opponents, including Opposition leader Yair Lapid, who accused Netanyahu of acknowledging that another term for his government would lead to the loss of American military assistance and sanctions that would severely damage Israel’s economy.
Lapid warned that such an outcome would cause prices to soar and inflict irreparable economic damage. He argued that replacing the government could preserve US support and prevent sanctions.
Political opponent Gadi Eisenkot derided the cryptocurrency proposal as the “BibiCoin vision,” describing it as a “threat to national security.” He warned that the approach would isolate Israel from global markets and damage the country’s technology and business sectors.
High-tech and financial sector leaders also warned that discussion or implementation of such a policy could cause severe economic harm, including driving away foreign investment and damaging technology companies dependent on exports.
Brought to you by www.srnnews.com
SRN News — View the original story at SRNNews.com.